A New Report by TexasGulfCoastOnline.com Shows How Two Developers Thrived During The Recession
Port Aransas, Texas (PRWEB) January 29, 2015 -- This study is about the lessons learned from two “high-end real estate project developers” that thrived during the worse recession and storms to hit the Texas coast in history. A silver lining from the unfortunate times the region experienced from 2008 to 2012.
At the real estate peak in 2007, over a dozen high-end projects were under way on the Texas coast transforming the skyline and promising better lifestyles. Some of the projects completely failed, most will redeem their value sometime in the future, but only two thrived and are roaring out of the recession.
The report shows how it was a combination of negative factors that took the Texas coast market by storm, while Texas overall had only minor effects from the recession.
The factors included:
1. Hurricanes Dolly and Ike in 2008
2. The Subprime mortgage crisis in 2008
3. The National real estate value bubble burst in 2009
4. The BP Deepwater Horizon oil spill in 2010
5. The News about the drug war on the U.S. Mexico border since 2006
The report also shows the criteria used to determine which are the best new projects on the Texas coast.
1. The properties being built, as well as the location, have to be rare and unique.
2. The owners and developers of the projects must be reputable and solidly financed.
3. An impressive amenities package must be offered both in the individual homes as well as the community - and must exceed what is already available in the local area.
4. A good marketing plan and sales operation team must be in place to ensure the project's success.
5. The project must not have major erosion and insurance issues.
6. The project should have energy efficient and storm resistant features.
7. The project design and price range should fit with the buyer profile for the area, and its surrounding properties.
8. The project and personnel must be in good standing with the local community.
9. The project must have sound market fundamentals such as rental income vs. price and supply vs. demand, predicting a safe investment.
The only two high-end developer projects that thrived during the recession are:
1. Cinnamon Shore, Port Aransas - Seaoats Group (CinnamonShore.com)
2. Los Corales, South Padre Island, Paez Development (PaezDevelopment.com)
"The attributes that they demonstrated can be used as a guide to determine the value of any project and also as a guide for other developers to follow." - said Michael Stuart, Editor TexasGulfCoastOnline.com/TexasBeachHomes.com
Winning High-end Real Estate Project Takeaways
• Great development leadership
• Good location / value
• Solid Market Fundamentals
• Strong Financial Backing
• Commitment to local community
• High-rises & Inclusive Resorts
Losing High-end Real Estate Project Takeaways
• Inexperienced developer
• Location price mismatch
• Problem with Market Fundamentals
• Highly leveraged project
• Environment issue
• Coastal Golf courses
See the report at: http://texasbeachhomes.com/what-thrived-and-dived-during-the-texas-coast-recession/
Michael Stuart, Editor TexasGulfCoastOnline.com/TexasBeachHomes.com
Mike’s experience in the technology industry is quite extensive. During his career, he has had the good fortune of serving both as a designer of complex enterprise applications and as a corporate executive. In his previous life, Mike was founder and CEO of AssetWorks Inc., a fortune 500 leader in facility management solutions.
Mike now enjoys living on the Texas Coast helping organizations with digital strategy as 1stonlinetech.com. Mike has a BSEE from Ohio State University and served as an Air Force officer in the Electronic Security Command.
TexasGulfCoastOnline.com/TexasBeachHomes.com provides real estate information and analysis for the Bolivar Peninsula, Crystal Beach, Galveston, Corpus Christi, Port Aransas, Rockport, South Padre Island, Port O'Connor and McAllen - Texas resort areas
Michael Stuart, TexasGulfCoastOnline.com, http://www.TexasGulfCoastOnline.com, +1 (361) 446-5392, [email protected]
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